Muthoot Finance, the No.1 trusted financial services brand and largest gold loan NBFC in India will be added to the MSCI (Morgan Stanley Capital Index) India Domestic Index from November 30, 2020, as a part of MSCI’s semi-annual review of indices.
Mr. George Alexander Muthoot, Managing Director of Muthoot Group commented on this development that, this is an accreditation for the growth & performance that the company had gained over the years. The major reasons for their success are the confidence that the customers have in them, hard work of the employees, rigorous implementation of best possible practices in the industry, and ultimately solid faith of the investors & bankers of the company.
The Muthoot Group expressed their immense pleasure, pride, and honor to see Muthoot Finance added to the MSCI India Domestic Index. The company officials assure that they will work hard to meet the growing expectations of all of their stakeholders and will also focus to maintain the highest standards of corporate governance.
There seems to have a consistent growth for Muthoot Finance, even in unprecedented times of this COVID-19 pandemic. The gold loan segment had witnessed increasing demand for the working capital requirement of small businesses, to attain their personal finance needs and also for making better use of consolidating higher-cost debts.
Recently on October 27, 2020, the company had issued Rs. 2000 crore NCD (Non-Convertible Debentures), which is the largest in its history and unbeaten in the gold loan industry. The issues were oversubscribed on the first day itself, which is another remarkable record achievement for the company and in its peer industry. This reflects that the NCDs of Muthoot Finance is a preferred investment alternative as the instrument is secured by gold and, investors who are looking for constant returns in uncertain times will get a much higher coupon rate than the alternative options like fixed deposits in banks.
The MSCI India Index is devised specifically to gauge the ultimate performance of the large and midcap sections of the Indian market. This index encloses approximately 85% of the Indian equity universe and so the companies that are to be included under MSCI India Index will be selected after having a comprehensive evaluation of multiple factors that are considered as prime importance for global investors.
